Hi, I would like to propose a fee for each deposit in farming to avoid sell pressure on bgov from services like autofarm (compound)
The fee could go to buy BGOV
Why is it important to have a stable or slightly bullish bgov value? Because the platform is nourished by bgov, if bgov has not value people won’t hold it and the bgov rewards would tend to zero for lenders.
In short, lenders need holders, and holders won’t hold if there is sell pressure
I agree with you that we should target a stable or bullish BGOV token price (although pumping the token price is not the priority - having a well used, successful protocol should be).
However, I’m not sure how much a deposit fee will help. A couple of points:
It seems a deposit fee will mostly discourage deposits meaning it won’t be good for TVL. Of course some people will still deposit, but there will be many more who deposit if there is no deposit fee. This could still be fine - the protocol still needs to generate revenues and a sustainable protocol which makes profits at a lower TVL level is better than having a higher TVL but no profits.
However, I doubt that a deposit fee (if it is small enough to avoid completely discouraging deposits) will generate enough money to make a significant dent in the supply - there was a huge burn of about 1.5% supply in 24 hours this week ($300k) and it didn’t make much difference.
I agree with you holders need a reason to hold the token instead of simply dumping farming rewards, but the solution for that might be to give BGOV stakers the platform fees (instead of burning them). I think the burning is needed now, with the high inflation and high farming rewards, but as that drops a fee sharing model may be better (or a mix of fee sharing and burning).
300k usd worth of bgov burned although the bgov is pegged to bzrx at 19:1… what a waste!
Those 300k usd could have gone to the bgov stakers in the form of BNB. These burns need to stop asap, they are pointless now
edit: yes it’s 6 months later and this thread should have been killed, so what 
still holds a message: these burns didn’t do shit for the price and are dumb… just saying
LOL.
While you’re undoubtedly correct that the burns didn’t help much, they were extremely popular with the community at the time - basically universal support as I recall, when we all hoped it would have the same effect on price as the quarterly BNB burns have on its price.
I guess it’s just something we chalk up to an experiment that didn’t work.
It’s a good point though - will the burns continue with BZRX or the new token after rebrand on BSC/Polygon?
Yea I was just having some fun with myself here, nice of you to revisit this topic to join me ;D
seriously though, is it worth to do a quick vote to stop the burn of bgov/pgov, to get more bang for your staking? Depends on how long we need to wait for the swap, I guess.
bzrx does not have any burn on any chain, so all burns will be cancelled entirely after the swap has been “completed”. Hopefully we will never have to burn again